Deliveroo achieved its first-ever annual profit last year and is expecting more growth despite an uncertain consumer environment.
The FTSE 250 listed company recorded a profit of £2.9m, compared to a loss of £31.8m the previous year. Its gross transaction value (GTV) was up 6% to £7.4bn.
Co-founder and CEO Will Shu today said the results show the company’s “strategy is working”.
“We continued to deliver value to consumers by incentivising partners to reduce mark-ups and by significantly enhancing our loyalty programme,” he said.
The company is targeting GTV growth in the high single digits for 2025 and adjusted EBITDA between £170m and 190m – up from £130m this year – as it makes targeted investments.
“Whilst the consumer environment remains uncertain, I am confident we can continue to deliver growth by focusing on the levers in our control,” said Shu, highlighting supporting restaurants to meet untapped demand around new occasions and expanding its grocery and retail offering.
Deliveroo said the improvement in overall GTV was driven by its international business, with continued strength in UAE and Italy. France also stabilised after acting as a drag on growth in the year before.
Earlier this week, Deliveroo announced it was pulling the plug on its loss-making Hong Kong operation after nine years and selling up to rival Singaporean platform Foodpanda.
Excluding Hong Kong, Deliveroo said international GTV growth was up 9% and orders increased 6%.
The UK and Ireland also performed well last year with GTV up 7% and order growth accelerating to 5% in the final months of the year.
Last year, Deliveroo launched a new Plus Diamond subscription, an invitation-only service offering members priority delivery, dedicated customer care teams, and access to restaurants unavailable to other users.
It said this week while it is still early days, “we are pleased with some early indicators” and noted an increase in paying subscribers.
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